President Bush on Wednesday said Tunisia is making progress on reforms, but more remains to be done. He added Tunisia is a friend and ally of the United States, and is standing with America on vital security matters.

"I want to thank you for working with the United States in the war on terror," Bush said. "I want to thank you for your understanding the need for Iraq to be democratic and free."

Bush spoke at the start of a meeting at the White House with Tunisian President Zine al-Abidine Ben Ali.

On his part, the Tunisian leader expressed his hope that relations with the US would expand. "We share principles together...and that is the establishment of states on the basis of democracy, human rights and combating terror. We believe that Tunisia is an ally of the United States and the relationships between the two countries has strategic dimension."